Please solve these questions urgently. Preferably within 40 MINUTES because I am already late. I have indicated the answers but I need you to show how to arrive at the answers.

___d17.The Raymore Company issued 10-year bonds on January 1, 2006. The 15% bonds have a face value of $100,000 and pay interest every January 1.The bonds were sold for $116,951 based on the market interest rate of 12%.Raymore uses the effective-interest method to amortize bond discounts and premiums.On January 1, 2007, Raymore should record interest expense (round to the nearest dollar) of:

a.

$7,032

b.

$7,500

c.

$8,790

d.

$14,034